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UK Prime Minister Theresa May was set to hold more Brexit talks with European Commission President Jean-Claude Juncker on Wednesday, as UK Foreign Secretary Jeremy Hunt said an agreement on the Irish backstop would help Britain meet its March 29 departure date.

Sterling jumped on Tuesday, amid conflicting reports regarding the death of the so-called 'Malthouse Compromise' which called for the Irish backstop to be renegotiated or, failing that, for an orderly 'no deal' withdrawal.

Stocks across the Continent are slipping lower as investors try to gauge the likely extent of the ongoing economic slowdown and wait for fresh headlines out of the trade talks between the US and China, which were set to resume later in the day, in Washington DC.

Centre-right parties are expected to again come out in front from the European Union parliamentary elections due to be held between 23-26 May, but the Continent's far-right parties will make fresh inroads, according to the results of a survey.